Energy and Climate Change CommitteeWritten evidence submitted by Associated British Ports (ABP)
Introduction
1. ABP is the UK’s largest and leading ports operator with 21 ports around Britain handling around one quarter of the UK’s seaborne trade.
2. ABP owns and operates the five ports located on the northern shore of the Severn estuary comprising from the west, Swansea, Port Talbot, Barry, Cardiff and Newport. ABP is the statutory Harbour Authority for the 5 ports and the port limits encompass areas of the Severn estuary.
3. These ports handle some 13 million tonnes of cargo annually, including a broad range of import and export cargo and they service a hinterland extending well beyond South Wales into the Midlands, London, Northern UK, M4/M5 corridor and the South West.
4. In addition to general cargo trade for distribution within the hinterland area, several ports service industry and manufacturing plants located on or near the port estate. In particular Port Talbot, Barry, Cardiff and Newport provide essential facilities for such businesses handling both inbound raw materials and product shipped to markets in the UK, Europe and globally.
5. ABP has significant reservations regarding potential negative impacts if a tidal barrage is constructed, including restrictions to vessel size and access and the overall competitive position of its ports relative to other ports in the UK. These effects may also impact on substantial parts of the South Wales economy which rely on these ports for their supply chains.
6. ABP also believes it is important to note the lack of detailed information about the new barrage proposal which is in the public domain. This issue was raised by ABP and the Port of Bristol in a separate letter to the Chairman of the Energy and Climate Change Committee on 7 November 2012.
Ports and the South Wales Economy
7. The UK Government has identified ports as crucial international gateways and key drivers of economic growth. For example, the National Policy Statement for Ports (“NPS”) (applicable to England and Wales) published in July 2012 states:
“… the provision of sufficient sea port capacity will remain an essential element in ensuring sustainable growth in the UK economy.” (p.9)
“Ports continue to play an important part in local and regional economies, further supporting our national prosperity.” (p.10)
8. A report by the Welsh Economic Research Unit in 2009 indicates that ABP’s ports in South Wales support at least £79.8 million of output with a GVA of £32.4 million. The activities of ABP’s port tenants accounts for an estimated 9,711 FTE jobs with a direct and indirect output of £2.78 billion and GVA of £902.5 million (2% of the Welsh total).
9. South Wales’ ports are vital strategic assets that continue to have a role in attracting investment to the Welsh economy. This role is highlighted through recent examples of inward investment which will assist in re-balancing the economy and encouraging export-led growth; however such development requires good access to the ports with which a Severn Barrage would interfere.
Access to South Wales ports
10. Previous studies have indicated a potential reduction in high water tide height of c. 1 metre caused by a barrage which would limit port capability to handle deeper drafted vessels and impact on port trades including coal, scrap, steel and animal feeds. Additional transit time and tug resources required to navigate through barrage locks would add to vessel freight costs placing ports behind a barrage at serious disadvantage.
11. A non-exhaustive summary of potential impacts requiring numerical and/or physical modelling and economic assessment is as follows:
Lock size, location & number.
Lock congestion & time through locks.
Locks to berth transit times & navigational routes.
Analysis of existing vessel dimensions using Severn ports & future demand profiles.
Authority responsible for management/operation of locks/charging regime.
Effect of reduced tidal range within the impounded estuary—vessel draft constraints.
High water reductions/variations both sides of barrage.
Accretion/erosion either side of barrage.
Flood risk outside barrage.
Affect on existing navigable channels.
Maintenance dredging factors—increased dredging/altered siltation patterns/relocation of spoil grounds in response to new current/turbidity regimes.
Shipping freight cost effects.
Effect on surface transport infrastructure demand/congestion—population increase, tourism, construction etc.
Economic impact on ports including competitive position.
Potential heightened water table effects on port structures/foundations.
Effect on inter-tidal port structures of increased mean tide height—inspection/maintenance/corrosion.
Water quality (water impounded to docks from estuary).
Conclusions
12. It is essential that the major opportunity cost of constructing a Severn Barrage is taken seriously and the implications, both economic and physical, must be comprehensively assessed.
13. It may be that construction of the barrage generates significant but ultimately transient economic benefits. The Government must consider the long term impact of the permanent loss or impairment of key strategic economic assets.
14. There are clear indications that the construction of a barrage may cause severe long term damage to the economy and jobs in South Wales.
November 2012